# In the matter of Dewan Housing Finance Corporation
Limited Vs. Union of India Writ Petition No. 3157 Of 2021 along with Writ Petition No. 3221 Of 2021

> HC judgment dated 2021-11-16. Citation: TCN-2021-HC-00008. The case involves writ petitions filed by Dewan Housing Finance Corporation Limited (DHFL) and…

- **Court:** HC
- **Order date:** 16 Nov 2021
- **Citation:** TCN-2021-HC-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/dewan-housing-finance-corporation-limited-vs-union-of-india-writ-petition-no-315-35eaf8a9

## Summary

### Background

The case involves writ petitions filed by Dewan Housing Finance Corporation Limited (DHFL) and Piramal Capital & Housing Finance Limited challenging an order by the CBI Court that partially allowed DHFL's application under Section 32A of the Insolvency and Bankruptcy Code (IBC). The CBI Court rejected the prayer for discharge made by DHFL but permitted the Corporate Debtor to be prosecuted through its erstwhile Directors. The successful resolution applicant, Piramal Capital, also challenged the order. The applicant in Interim Application No. 14632 of 2021 is the erstwhile Chairman and Managing Director of Dewan Housing Finance Corporation Limited and the co-accused in Special Case No.820/2021. The Resolution Plan submitted by Piramal Capital and Housing Finance

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## Facts

Dewan Housing Finance Corporation Limited (DHFL) is a Non-Banking Financial Company (NBFC) regulated by the Reserve Bank of India (RBI). On November 20, 2019, RBI superseded the Board of Directors of DHFL due to governance concerns and defaults. On November 29, 2019, RBI filed a Company Petition to initiate Corporate Insolvency Resolution Process (CIRP) against DHFL under IBC. On December 3, 2019, the National Company Law Tribunal (NCLAT) admitted the Company Petition and commenced the moratorium period. On March 7, 2020, the CBI registered an FIR against DHFL and its erstwhile Directors, including Kapil Wadhwan and Dhiraj Wadhwan, under various sections of the Indian Penal Code and the Prevention of Corruption Act. The transactions forming the subject matter of the

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## Issues and analysis

### Issue 1: Whether Section 32(1)(a) of IBC lays down a direction that, Corporate Debtor, would be absolved of …

**Ratio:** Section 32A of the IBC provides immunity to the corporate debtor from offences committed

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**Reasoning:** The court reasoned that the facts of the case established a change in the management of

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**Interpretation:** The interpretation of Section 32A involves determining whether the conditions

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**Application:** The court applied the ratio to the facts of the case, noting that the

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## Parties

- **Judges:** SANDEEP K.…
- **Respondents:** Dewan Housing…; Union of…

## Timeline

- **2019-11-20 — RBI supersedes Board of…**: RBI superseded Board of Directors of DHFL…
- **2019-11-29 — RBI files Company…**: RBI filed Company Petition under the Insolvency and Bankruptcy Rules, 2019 to initiate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31 — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

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